Question: Exercise 3-24 (Algorithmic) (LO. 1) In the current year, Nighthawk Corporation, a calendar year C corporation, has $5,080,000 of adjusted taxable income and $152,400

Exercise 3-24 (Algorithmic) (LO. 1) In the current year, Nighthawk Corporation, a

Exercise 3-24 (Algorithmic) (LO. 1) In the current year, Nighthawk Corporation, a calendar year C corporation, has $5,080,000 of adjusted taxable income and $152,400 of business interest income. Nighthawk has no floor plan financing interest. The business interest expense for the year is $2,032,000. a. Assume that Nighthawk has average gross receipts for the prior three-year period of $35,200,000. Determine Nighthawk's current-year deduction for business interest. 1,676,400 b. Assume that Nighthawk has average gross receipts for the prior three-year period of $21,750,000. Determine Nighthawk's current-year deduction for business interest. 1,016,000 X

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